Emerson Electric makes US$7.6b offer for NI Corp public after rebuffed approaches

US INDUSTRIAL and software firm Emerson Electric on Tuesday (Jan 17) made public its offer to buy NI Corp in a deal with an enterprise value of US$7.6 billion, after the automated-equipment maker rebuffed earlier approaches.

Emerson’s all-cash bid of US$53 per share represents a premium of about 13 per cent to NI’s closing price on Friday. Shares of NI were up 13 per cent in trading before the bell, while Emerson fell 4 per cent.

Emerson has been involved in a string of deals over the last few years to pivot itself as a provider of automation products and services, and the offer to buy NI is a fresh multi-billion-dollar bet in that direction.

Texas-based NI, formerly known as National Instruments, specialises in making automated testing and measurement tools to aid in research and in the validation of new technologies. It serves the semiconductor, transportation, aerospace and defence industries.

The equity value of the offer is US$6.9 billion, excluding debt. Emerson said that the offer was not subject to any financing conditions.

Citi Research wrote on Sunday that NI could be a good strategic fit for Emerson, which has indicated test and measurement markets as an area of focus.

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NI did not immediately respond to a request for comment. Emerson said that NI has not engaged “meaningfully” since its bid of US$53 per share was made privately in November. Emerson’s first outreach to NI was in May 2022, when it offered US$48 per share.

NI said on Friday that it was exploring strategic options after acquisition interest from companies. Reuters reported that one of the interested parties was Emerson.

The acquisition interest from potential suitors, as reported by Reuters, forced NI to adopt a so-called poison pill, which Emerson termed as “disappointing”. REUTERS